Basic Management Concepts and Industrial Organization
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Micro link Information
Technology Collage
Basic Management
Concepts and Industrial
Assignment - 2
Name：Abel Zecharias
Section: RD3CE1
ID: R12/049/18
Advisor：Surafel
Due Date：03/04/2020
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Basic Management Concepts and Industrial Organization
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Table Of Contents
Q
Topics
Page
There is no important area of human activity than management
Q1
since its task is that of getting things done through people
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Q2
Is management both science and art?
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Q3
Q3.1
Q4
Q5
Define management. How does it differ from administration?
Key Differences Between Management and Administration
What do you understand by the term “Levels of Management"?
What are functions of a manager?
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5
Is mere knowledge of Management enough to become
Q5.1
successful manager?
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Discuss basic principles of Management along with their
Q6
Q6.1
Q7
significance.
The Importance of the Principles
Write a note on the evolution of management thought.
What are the recent trends in management thoughts?
Q7.1
Q8
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Write a note on the Different Industrial Organizational
Structures with a demonstrative diagrams and examples?
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Q1.“There is no important area of human activity than management since its task is
that of getting things done through people".
Management is the process by which human efforts are coordinated and combined with other
resources to accomplish organizational goals and objectives.
“Getting things done” means to get tasks and activities carried out. It implies that management is not
a mere philosophy but a highly performance-oriented function. Management gets things done
through people,comprising of both managers, subordinate and staff members.“Getting things done”
through the people is really an art, which consists of a range of skills acquired and refined in the
course of practice. The skills which are required to get things done through people includes
conceptual skills, technical skills, administrative skills, social skills and so on.
In order to get things done through people, management has to plan the things which are to be
done. This “planning” describes the formulation of objectives, strategies, policies and programs at
the top level of management. The tasks to be carried out for achieving the goals are to be determined
and assigned to individuals and work units. It is called organization.. Then the roles or various
position holders and their inter-relationships are to be designed and defined.Thus, the management
means to get things done in an organized and disciplined manner.Yes, of course it is a task of getting
things done through people.
Q2. “Is management both science and art? ”
Management is both an art and a science. Management combines features of both science as
well as art. It is considered as a science because it has an organized body of knowledge which
contains certain universal truth. It is called an art because managing requires certain skills which
are personal possessions of managers. Science provides the knowledge & art deals with the
application of knowledge and skills. A manager to be successful in his profession must acquire
the knowledge of science & the art of applying it. Science teaches to ’know’ and art teaches
to ’do’.
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Example: a person cannot become a good singer unless he has knowledge about various
components of correct singing(i.e. pitch,breathing,rhythm,diction and voice) & he also applies his
personal skill in the art of singing.
Same way it is not sufficient for manager to first know the principles but he must also apply them in
solving various managerial problems that is why, science and art are not mutually exclusive but they
are complementary to each other
Q3.Define management. How does it differ from administration?
Management is defined as an act of managing people and their work, for achieving a common goal
by using the organization’s resources. It creates an environment under which the manager and his
subordinates can work together for the attainment of group objective. It is a group of people who use
their skills and talent in running the complete system of the organization. It is an activity, a function,
a process, a discipline and much more.
Administration defines as a systematic process of administering the management of a business
organization, an educational institution for examples school, college, university, government office
or any non-profit making organization. The main function of administration is the formation of
policies, plans, and procedures, setting up of objectives and goals, implementing rules and
regulations, etc.
Q3.3 Key Differences Between Management and Administration
1. Management implements the policies and goals set by the administration. On the contrary, the
administration forms the policies and objectives of a company or firm.
2. Management is a middle-level executive authority and is responsible for the execution of the
policies and goals as determined by the administration. On the other hand, the administration is on
the top level of the organization with the critical functions. They are responsible for determining the
policies and aims of the business or the company.
3. Management maintains the function of the business whereas, the administration maintains the
form of the company.
4. Management makes the decisions inside the boundaries of the frame, which can be put up from the
administration while the administration makes the vital decisions of business completely.
5. In management, technical skills and human relationship management skills are crucial. Conversely
in administration one requires administrative qualities, instead of technical ones.
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Q4. What do you understand by the term “Levels of Management"?
The term “ Levels of Management ’ refers to a line of demarcation between various managerial
positions in an organization. The number of levels in management increases when the size of the
business and work force increases and vice versa. The level of management determines a chain
of command, the amount of authority & status enjoyed by any managerial position. The levels of
management can be classified in three broad categories:
1. Top level / Administrative level
2. Middle level / Executory
3. Low level / Supervisory
Managers at all these levels perform different functions.
Q5.What are functions of a management?
1. Planning: is future-oriented and determines an organization’s direction. It is a rational and
systematic way of making decisions today that will affect the future of the company. It is a kind of
organized foresight as well as corrective hindsight. It involves predicting of the future as well as
attempting to control the events. It involves the ability to foresee the effects of current actions in the
long run in the future.
An effective planning program incorporates the effect of both external as well as internal factors. The
external factors are shortages of resources; both capital and material, general economic trend as far
as interest rates and inflation are concerned, dynamic technological advancements, increased
governmental regulation regarding community interests, unstable international political
environments, etc.
2. Organizing: Organizing requires a formal structure of authority and the direction and flow of such
authority through which work subdivisions are defined, arranged and coordinated so that each part
relates to the other part in a united and coherent manner so as to attain the prescribed objectives.
3. Staffing: Staffing is the function of hiring and retaining a suitable work-force for the enterprise
both at managerial as well as non-managerial levels. It involves the process of recruiting, training,
developing, compensating and evaluating employees and maintaining this workforce with proper
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incentives and motivations. Since the human element is the most vital factor in the process of
management, it is important to recruit the right personnel.
4. Directing/Leading: The directing function is concerned with leadership, communication,
motivation, and supervision so that the employees perform their activities in the most efficient
manner possible, in order to achieve the desired goals.
5. Controlling: The function of control consists of those activities that are undertaken to ensure that
the events do not deviate from the pre-arranged plans. The activities consist of establishing standards
for work performance, measuring performance and comparing it to these set standards and taking
corrective actions as and when needed, to correct any deviations.
Q5.1 Is mere knowledge of Management enough to become successful manager?
In my opinion , Just the basic management knowledge is not quite sufficient to be a successful
manager. Knowledge of the firm/company that you are going to manage, knowing your exact
guidelines, knowing your employees, maybe even some of their backgrounds, etc are some of the
other qualities to be a good manager. Having a good attitude, good personality, dressing, etc are
some of the other important personal things that a successful manager should have.
Q6.Discuss basic principles of Management along with their significance.
The Principles of Management are the essential, underlying factors that form the foundations of
successful management.
Division of Work: According to this principle the whole work is divided into small tasks. The
specialization of the workforce according to the skills of a person, creating specific personal and
professional development within the labor force and therefore increasing productivity; leads to
specialization which increases the efficiency of labor.
Authority and Responsibility - This is the issue of commands followed by responsibility for their
consequences. Authority means the right of a superior to give enhance order to his subordinates;
responsibility means obligation for performance.
Discipline: It is obedience, proper conduct in relation to others, respect of authority, etc. It is
essential for the smooth functioning of all organizations.
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Unity of Command: This principle states that each subordinate should receive orders and be
accountable to one and only one superior. If an employee receives orders from more than one
superior, it is likely to create confusion and conflict.
Unity of Direction: All related activities should be put under one group, there should be one plan of
action for them, and they should be under the control of one manager.
Subordination of Individual Interest to Mutual Interest: The management must put aside personal
considerations and put company objectives firstly. Therefore the interests of goals of the organization
must prevail over the personal interests of individuals.
Remuneration: Workers must be paid sufficiently as this is a chief motivation of employees and
therefore greatly influences productivity. The quantum and methods of remuneration payable should
be fair, reasonable and rewarding of effort.
The Degree of Centralization: The amount of power wielded with the central management depends
on company size. Centralization implies the concentration of decision making authority at the top
management.
Line of Authority: This refers to the chain of superiors ranging from top management to the lowest
rank. The principle suggests that there should be a clear line of authority from top to bottom linking
all managers at all levels.
Order: Social order ensures the fluid operation of a company through authoritative procedure.
Material order ensures safety and efficiency in the workplace. Order should be acceptable and under
the rules of the company.
Equity: Employees must be treated kindly, and justice must be enacted to ensure a just workplace.
Managers should be fair and impartial when dealing with employees, giving equal attention towards
all employees.
Stability of Tenure of Personnel: Stability of tenure of personnel is a principle stating that in order
for an organization to run smoothly, personnel (especially managerial personnel) must not frequently
enter and exit the organization.
Initiative: Using the initiative of employees can add strength and new ideas to an organization.
Initiative on the part of employees is a source of strength for organization because it provides new
and better ideas. Employees are likely to take greater interest in the functioning of the organization.
Team Spirit: This refers to the need of managers to ensure and develop morale in the workplace;
individually and communally. Team spirit helps develop an atmosphere of mutual trust and
understanding. Team spirit helps to finish the task on time.
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Q6.1 The Importance of the Principles
Having a clear management structure in place is vital for any successful organization. Efficient and
well intentioned management sets the tone for the rest of the staff. It is common for the attitude
approach of managers to filter through the entire organization, so having managers working in an
exemplary way is an excellent example for employees to follow.
Q7. Write a note on the evolution of management thought.
The practice of management is as old as human civilization. The ancient civilizations of Egypt (the
great pyramids), Greece (leadership and war tactics of Alexander the great) and Rome displayed the
marvelous results of good management practices.
The origin of management as a discipline was developed in the late 19th century. Over time,
management thinkers have sought ways to organize and classify the voluminous information about
management that has been collected and disseminated. These attempts at classification have resulted
in the identification of management approaches. The approaches of management are theoretical
frameworks for the study of management. Each of the approaches of management are based on
somewhat different assumptions about human beings and the organizations for which they work.
The different approaches of management are
A) Classical approach,
B) Behavioral approach,
C) Quantitative approach, and
D) Systems approach,
E) Contingency approach.
A) THE CLASSICAL APPROACH:
The classical approach is the oldest formal approach of management thought. Its roots pre-date the
twentieth century. The classical approach of thought generally concerns ways to manage work and
organizations more efficiently. Three areas of study that can be grouped under the classical approach
are scientific management, administrative management, and bureaucratic management.
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B) THE BEHAVIORAL APPROACH:
The behavioral approach of management thought developed, in part, because of perceived
weaknesses in the assumptions of the classical approach. The classical approach emphasized
efficiency, process, and principles. Some felt that this emphasis disregarded important aspects of
organizational life, particularly as it related to human behavior. Thus, the behavioral approach
focused on trying to understand the factors that affect human behavior at work.
C) THE QUANTITATIVE APPROACH:
The quantitative approach focuses on improving decision making via the application of quantitative
techniques. Its roots can be traced back to scientific management.
D) SYSTEMS APPROACH:
The systems approach focuses on understanding the organization as an open system that transforms
inputs into outputs. The systems approach began to have a strong impact on management thought in
the 1960s as a way of thinking about managing techniques that would allow managers to relate
different specialties and parts of the company to one another, as well as to external environmental
factors. The systems approach focuses on the organization as a whole, its interaction with the
environment, and its need to achieve equilibrium.
E) CONTINGENCY APPROACH:
The contingency approach focuses on applying management principles and processes as dictated by
the unique characteristics of each situation. It emphasizes that there is no one best way to manage
and that it depends on various situational factors, such as the external environment, technology,
organizational characteristics, characteristics of the manager, and characteristics of the subordinates.
Contingency theorists often implicitly or explicitly criticize the classical approach for its emphasis
on the universality of management principles; however, most classical writers recognized the need to
consider aspects of the situation when applying management principles.
Q7.1 What are the recent trends in management thoughts?
The recent trends in management are:
1. Total Quality Management
2. 2. Risk Management
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3. Crisis Management
4. Resistance to Change
5. Change Through Management Hierarchy
6. Concept of Change Management
7. Global Practices/International Business
8. Role of an International Manager
Q8.Write a note on the Different Industrial Organizational Structures with a
demonstrative diagrams and examples?
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